Walmart 8-K

PositiveEarningsNew guidance

Better Walmart eCommerce economics and higher gross margins pushed operating-income growth ahead of sales; investment losses cut GAAP EPS.

Filed 2026-02-19 06:59 ET

Summary

Q4 and FY2026 results with Q1 and FY2027 guidance. Q4 revenue grew 5.6% and operating income 10.8%; adjusted EPS rose 12.1%, while GAAP diluted EPS fell as losses on equity and other investments weighed on reported earnings. Walmart issued constant-currency sales and operating-income outlooks and adjusted EPS ranges for Q1 and FY2027.

Key Figures

Metric Q4 FY26 Q4 FY25 Y/Y FY26 FY25 Y/Y
Total revenues $191B $181B +5.6% $713B $681B +4.7%
Operating income $8.71B $7.86B +10.8% $29.8B $29.3B +1.6%
Adjusted operating income, constant currency, non-GAAP $8.57B $7.76B +10.5% $31.1B $29.5B +5.4%
Net income attributable to Walmart $4.24B $5.25B (19.4%) $21.9B $19.4B +12.6%
Diluted EPS attributable to Walmart $0.53 $0.65 (18.5%) $2.73 $2.41 +13.3%
Adjusted EPS, non-GAAP $0.74 $0.66 +12.1% $2.64 $2.51 +5.2%
Operating cash flow — — — $41.6B $36.4B +14.1%
Free cash flow, non-GAAP — — — $14.9B $12.7B +17.9%
  • Q4 operating-income growth outpaced sales, supported by higher gross margins, expense leverage and improved eCommerce economics. Global eCommerce sales grew 24%; Walmart U.S. comparable sales rose 4.6%. Adjusted EPS excludes a $0.21/share net loss on equity and other investments.
  • FY operating cash flow increased $5.1B, primarily from higher cash provided by operating income, lower cash taxes and payment timing. Free cash flow growth was partly offset by a $2.9B increase in capital expenditures.
  • Repurchased 85.0M shares for $8.1B in FY26, including 9.7M shares for $1.1B in Q4 at an average $111.36/share; weighted-average diluted shares declined 0.9% in Q4 and 0.7% for FY. A new $30B repurchase authorization replaces remaining capacity under the prior authorization. Cash was $10.7B and total debt, including lease obligations, was $51.5B at year-end.

Guidance

Metric Period Guidance Prior Direction
Net sales, constant currency Q1 FY27 Increase 3.5% to 4.5% — Initiated
Operating income, constant currency Q1 FY27 Increase 4.0% to 6.0% — Initiated
Adjusted EPS, non-GAAP Q1 FY27 $0.63-$0.65 — Initiated
Net sales, constant currency FY2027 Increase 3.5% to 4.5% — Initiated
Adjusted operating income, constant currency, non-GAAP FY2027 Increase 6.0% to 8.0% — Initiated
Interest, net FY2027 Increase ≈$200M-$300M — Initiated
Effective tax rate FY2027 ≈23.5%-24.5% — Initiated
Adjusted EPS, non-GAAP FY2027 $2.75-$2.85 — Initiated
Capital expenditures FY2027 ≈3.5% of net sales — Initiated

Investor Takeaways

  • Q1 results vs the guided constant-currency sales and operating-income growth ranges, and adjusted EPS range.
  • FY2027 sales growth, adjusted operating-income growth and adjusted EPS vs guidance will show whether operating performance sustains the growth trajectory.

The summary is written by an AI model reading the filing.

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